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A 3.8% Discount Rate?

Author

Listed:
  • John Hartwick

    () (Queen's University)

Abstract

We find that a discount rate of 3.8% allows us to derive the schedule of "value of life years" in Murphy and Topel [2006] from their schedule of "value of remaining years of life", this latter presumably being based on a "value of statistical life" of $6.3 million. We draw on the Makeham function for life expectancy in our calculation.

Suggested Citation

  • John Hartwick, 2009. "A 3.8% Discount Rate?," Working Papers 1199, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:1199
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    File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1199.pdf
    File Function: First version 2009
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    More about this item

    Keywords

    value of life; discount rate; life expectancy;

    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • I10 - Health, Education, and Welfare - - Health - - - General

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